“There is a Washington, Wall-Street axis; some want to rely on the taxpayers in order for there to be a bailout fund,” House Financial Services Committee Chairman Jeb Hensarling says on Bloomberg Television.

“Far from being a ‘wet kiss’ for Wall Street, as Warren has suggested, the new legislation, the Republican committee countered, actually faces opposition from the banks, as reported by the New York Times last month. It is certainly the most serious effort yet by the Republicans to go beyond being the party of ‘No’ in this important policy sector.”

The Financial CHOICE Act “rightly focuses on the need to foster greater accountability. Such accountability must focus on Wall Street, of course, so that wrongdoing and consumer fraud are punished. But it must also focus on Washington, where Dodd-Frank has weakened regulatory transparency and accountability to Congress both in budget and in trading off costs and benefits of alternative regulatory approaches.”

“The Hensarling plan takes steps to more aggressively enforce laws against fraud, self-dealing, and insider trading by instituting new penalties, like doubling and tripling fines in some cases… Increased regulation has hurt smaller banks in particular, he said, andthe left is ‘very happy to let community-centered banks wither on the vine.’”

“…the broadest, most ambitious effort yet by the GOP to change how Wall Street and Washington interact…Hensarling’s bill also would take steps to boost the government’s ability to go after and punish illegal activity on Wall Street.”

“Republicans in the House Financial Services committee have introduced a replacement for Dodd-Frank they say will simplify banking regulation and make it easier and cheaper for financial services companies to comply, while still preventing a future banking crisis.”

“Michael Block, chief strategist at Rhino Trading Partners, said he agrees with the effort, and sees Hensarling’s proposals benefitting the smaller institutions in the long run. ‘There can be better liquidity in these markets to help all investors…”

“Under theFinancial CHOICE Act – short for Creating Hope and Opportunity for Investors Consumers and Entrepreneurs – regulation would have to passa cost-benefit test. Community banks would also be held to a different standard than larger institutions…‘So our plan requires financial regulators to tailor regulations so they fit a bank or credit union’s business model and risk profile.’”

“The legislative outline calls for imposing stronger penalties for financial fraud and for greater transparency in the enforcement process, which policy makers on both sides of the aisle have advocated since the financial crisis, albeit with little to show so far. It also gives a nod to community banks, teeing up provisions that would loosen standards for smaller financial institutions. But even some of those proposals have faced resistance from Democrats in Congress.”

“The Financial CHOICE Act is a comprehensive alternative to the current regulatory regime, and if enacted, it would reduce Washington’s overreach and boost economic growth, job creation, and wages across America. The Conservative Reform Network applauds Chairman Hensarling and the House Financial Services Committee for producing the kind of policies necessary to restore the promise of the American dream.”

“While Democrats and financial reform advocates cast Hensarling’s plan as a giveaway to Wall Street, there were signs that the nation’s biggest banks would not be willing to accept the tradeoff he proposed…Small banks, however, did not hesitate to get behind the plan.”